Last week, the positive rally of the previous four weeks came to an end as the Malta Stock Exchange (MSE) index fell 0.3 per cent after having closed in negative territory in four out of the week’s five sessions. In fact, the MSE index only returned to positive territory on Friday with a meagre gain as Bank of Valletta plc (BOV) and Go plc closed the session higher.
Throughout the week, BOV was one of the main contributors to the week’s decline having shed 1.5 per cent from its share price, while on the positive side, Malta International Airport plc (MIA) ended the week at an all-time high of €1.90.
Last week was characterised by a significant number of company announcements, some of which reported their financial results for 2012. Yet it seemed investors had already priced in the outcomes of these results as there were no significant price movements.
Turnover over the week regained some lost ground as €1.5 million, up from the previous week’s €1.2 million, was traded in 122 deals. Last week, 16 equities were traded, of which only three gained, while seven closed in the red, and the remaining failed to record any price movements.
Contrary to what happened in the previous week, nearly all banking equities fell except for Lombard Bank plc, which closed flat at €1.915.
On Thursday, the Lombard Bank Group announced that its pre-tax profits for the year ended December 31, 2012, fell by 16.7 per cent to €9.4 million, mainly due to a €2 million gain in 2011 on the disposal of securities which did not occur in 2012.
Moreover, the group’s investment in the postal operator through Redbox Ltd did not perform as well as it did in 2011 due to the changes in cross-border tariffs imposed by the Universal Postal Union.
The bank added that loans and advances to customers rose by three per cent to almost €320 million while the bank took an impairment allowance of just under €1 million. The bank’s capital adequacy ratio stands at 18.5 per cent, well above the regulatory minimum of eight per cent.
The bank’s annual general meeting will be held on April 25 during which the board of directors will recommend the payment of a final net dividend of €0.078 per share, which is a four per cent increase over the previous year.
A bonus share issue of one share for every 10 shares held will be allotted on May 28 to registered shareholders as at May 27.
Meanwhile, BOV shares lost 1.5 per cent, or €0.035, as the equity closed the week at €2.25. The equity kicked the week off with a 0.6 per cent gain but it drifted lower in the following three sessions as it traded at a weekly low of €2.23 before recovering somewhat on Friday on improved volume. Throughout the week over 211,000 BOV shares were traded over 45 transactions worth €480,000.
HSBC Bank Malta plc closed the week almost flat at €2.749, a meagre fall of 0.04 per cent. Trading volume was initially weak but improved gradually until Thursday. There were no trades on Friday.
On Thursday, the bank announced that HSBC Life Assurance (Malta) Ltd a wholly-owned subsidiary of the company, has agreed to enter into a portfolio transfer agreement with HSBC Life (Europe) Ltd (HLE) for the acquisition of HLE’s insurance policy book for nil consideration.
The transaction is expected to be completed in the last quarter of this year subject to regulatory approvals.
The unit-linked investment policies held under this portfolio have a value of circa €1.1 billion, and in 2012 the portfolio produced gross annual management charges of approximately €2.75 million.
Meanwhile, Fimbank plc’s share price lost two per cent to end the week at $0.98 after trading at a weekly high of $1.02. The banking equity was the most liquid in terms of volume as over 400,000 shares changed hands in 14 deals, the bulk of which took place on Friday.
On a positive note, MIA shares gained five per cent, or €0.09, to reach €1.90. However, trading volume was disappointing as just 6,500 shares were traded, and only the last 200 shares went through at the €1.90 level.
Likewise, Go plc shares gained 0.8 per cent as once again the equity surpassed €1.40 to close at €1.41, a 23-month high, despite having traded at a weekly low of €1.385.
The company’s board of directors are due to meet on Wednesday to consider and approve the firm’s audited financial statements for the year ended December 31, 2012, and to consider the declaration of a final dividend to be recommended to the AGM to be held on May 7.
In the IT sector, RS2 Software plc gained 0.6 per cent as it ended the week at €0.905, while both Crimsonwing plc and 6PM Holdings plc closed unchanged at €0.54 and £0.45 respectively.
Subdued trading in Plaza Centres plc left the equity’s price intact at €0.58 despite the company announcing its final results for the year ending December 31, 2012, on Wednesday. The company reported that revenue for the period rose 2.4 per cent to €2.3 million despite a lower occupancy level of 84 per cent. The company anticipates that the occupancy level should increase in the second quarter of 2013. Net profit for the year fell marginally to €820,000, down from €840,000 a year earlier.
During the company’s AGM, which is to be held on May 31, the board of directors will propose for approval the payment of a net dividend of €0.0247 per share. The dividend will be paid to all shareholders as on May 2, and will be paid on June 5.
Meanwhile, International Hotel Investments plc traded flat at €0.79 after one deal of 13,000 shares. Last week, IHI announced that the company’s AGM on May 23.
On the other hand, Simonds Farsons Cisk plc shares lost two per cent, or €0.05, to close at €2.55.
Likewise, the share prices of Maltapost plc fell three per cent, or €0.03, as two deals of 165,000 shares were executed. The postal operator ended the week at €1.02.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors Ltd, does not intend to give investment advice and the contents therein should not be construed as such. The company is licensed to conduct investment services by the MFSA and a member of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.